Every state has adopted laws regulating MLM companies. Visit this page to look up MLM law in your state.read more »
"ATCP 122.02 Definitions.
"(1) 'Chain distributor scheme' is a sales device whereby a person, upon a condition that the person make an investment, (emphasis added) is granted a license or right to recruit for profit one or more additional persons who also are granted such license or right upon condition of making an investment (emphasis added) and may further perpetuate the chain of persons who are granted such license or right upon such condition. (emphasis added). A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for the above license or right to recruit or the receipt of profits therefrom, does not change the identity of the scheme as a chain distributor scheme.
"(2) 'Investment' is any acquisition, for a consideration other than personal services, (Emphasis added) of personal property, tangible or intangible, for profit or business purposes, and includes, without limitation, franchises, business opportunities and services. It does not include real estate, securities registered under ch. 551, Stats., or sales demonstration equipment and materials furnished at cost for use in making sales and not for resale
Other Pages of Interest
MLM law in 50 states, IRS Publication 911, the MLM Textbook, as well as a comprehensive index of articles on the direct selling industry.read more »
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Starting and Running the Successful MLM Company manual
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